Forget ICOs and STOs, now there’s the BRO! Yep, French crypto asset issuance platform Tozex has created the ‘Believers Reward Offering’ or BRO. 

Tozex is pitching the novel new crypto fundraising vehicle as an alternative to initial coin offerings (ICOs) and security token offerings (STOs), and billing it as an “anti-crisis business solution”, that gives small to medium-sized enterprises access to new financing possibilities. 

Specifically, the company says the BRO is a sustainable alternative to ICOs and STOs, which allows businesses to access finance by borrowing stablecoins from investors anywhere in the world. 

The plan is for those contributing by sending stablecoins like TUSD or DAI to be rewarded with a fixed amount, while there will be a bonus for those “true believers” who leave their funds in place, allowing time for the financed project to “skyrocket.” 

Conducted using Tozex’s blockchain-based crowd-lending protocol, which uses smart contracts to autonomously execute loans tied to a borrower’s cryptocurrency collateral, while ensuring complete transparency, BRO offerings will, it is claimed, reduce the risks of price manipulation and exit scams, which have plagued ICOs over the past few years. 

Those behind Tozex, including co-founder Remy André Ozcan, believe offerings like BROs will soon come to be accepted in the mainstream business world, not just the blockchain sector, and will enable businesses to survive and prosper through the coming COVID-19 lockdown-induced economic crisis. 

The Tozex roadmap calls for first quarter BRO interests to be distributed and TOZ tokens to be listed on the Tozex exchange in Q3 2020, with a final version published, second quarter BRO interests distributed, an OTC desk service launched, and the securing of US and Japanese financial services licenses in  Q4 2020. 

AYO.NEWS says:

The Tozex team certainly has lofty ambitions, and the BRO is intriguing, especially given the unprecedented economic crisis we are entering into, which is sure to see many businesses unable to access traditional financing. 

However, although the Tozex team say they have specifically designed the BRO to mitigate the risks inherent with ICOs and STOs, we wonder if the negativity surrounding ICOs has reached such a level that it will cloud the perception of BROs, regardless of the technical facts?

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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